The New Federal Reserve Chairman, Interest Rates and Policy: The Perfect Excuse

 

THE NEW  FEDERAL RESERVE  CHAIRMAN, INTEREST RATES AND POLICY: THE PERFECT EXCUSE

 

The Federal Reserve’s Interest rate decision, and new policy announced yesterday, as reported by the Wall St. Journal                                                          (https://www.wsj.com/livecoverage/federal-reserve-march-meeting-2018),  indicated that its base rates would rise by 25 basis points (or 1/4 of 1%) immediately, and laid out a path for three further increases this year, which would rates by a full percent in 2018. New Federal Reserve Chairman, Jerome Powell, took center stage in the traditional news conference following the press release.  Powell addressed tariffs, inflation, fiscal policy, and the new tax bill among other topics.

At first, the Dow Jones Industrial Average and Nasdaq Composite traded higher, but closed with small losses and later were joined by the Cryptocurrency sector, which never closes (it trades 24/7).  Precious  Metals gapped higher and were the best performers.

Real” Interest rates (defined as the nominal rate minus inflation) vaulted to the greatest level since September, 2013.           (https://www.zerohedge.com/news/2018-03-21/real-rates-spike-highest-sept-2013-taper-tantrum-highs) 

During after hours trading, the various markets began  to accelerate their downside momentum and broke through several technical indicators such as trend lines and moving averages.  This, in turn, led to a flurry of Wall Street “analysts” to issue hurried announcements that retracted their prior positions.

If they had only read the posts that presented the case made repeatedly by  (http://markonomics101.com/) which began with  (http://markonomics101.com/2018/03/06/dow-jones-industrial-average-remains-in-crash-pattern/)   and continued with  (http://markonomics101.com/2018/03/07/are-cryptos-getting-ready-to-crash-the-stock-markets-party/)   and    (http://markonomics101.com/2018/03/13/stock-markets-remain-on-crash-alert-new-highs-in-nasdaq-are-a-fake-out-not-a-break-out/), they would not have been zigging when they should have been zagging.

Even after the “Stock Market Crash Pattern” was repeatedly described and reposted, going back in history, such as  (http://markonomics101.com/2018/03/15/hindenburg-omen-all-over-the-financial-press/),  it was still ignored by the entire community or “herd” of Wall Street.  How on Earth will they ever be able to explain their “Wrong Way Corrigan”.  (https://en.wikipedia.org/wiki/Douglas_Corrigan)      positions will indeed be something to behold!

 

 

 

 

 

 

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